Just a few months ago, news impacting gold and other metals was very different from today as at that time we were dealing with the impact of tax reform, the US budget and a major increase in military spending talk of infrastructure spending.
Gold prices edged higher on Thursday, adding to gains in the previous session on the back of a weaker dollar after the U.S. Federal Reserve disappointed investors expecting more hawkish comments on interest rate rises.
Gold prices were on track Thursday to notch back-to-back session declines, as a leading dollar index strengthened and U.S. stocks, which often move inversely to the precious metal, traded mostly higher.
Gold and silver continue to fight the opposing forces of inflation versus constant talk of higher interest rates to come. This has led to volatile two way action for most in this sector. Copper has stalled as US stocks recover from recent harsh breaks.
Gold edged down on Thursday and held on track for its biggest weekly loss of 2018 as the dollar was boosted by minutes from the last U.S. Federal Reserve meeting that showed policymakers backed further rises in interest rates.
Gold futures finished at the highest level in nearly three weeks after a hotter-than-expected headline inflation reading prompted investors to turn to the precious metal as a hedge against rising prices.
Gold futures on the COMEX division of the New York Mercantile Exchange ended at a nearly one-month low on Wednesday, as the U.S. dollar gained and stocks moved higher, dulling investment demand for the precious metal.
Current events have injected financial markets with a solid does of volatility. Wage inflation showed up in the latest US Jobs Data numbers both here and in Germany. Japan continues to languish. Stock indices ended a vertical move to the upside, that began on January 1st and ended on January 29th.